Rationalise GST now

Counteract coronavirus supply shock with tax reform

The likelihood that the novel coronavirus will cause a significant supply shock to the Indian economy — as well as a rippling demand shock from sectoral hits to some employment-intensive industries — will increase the pressure on the government to pump up the economy. In this context, as things stand today, the government should avoid a stimulus package that would not make any significant difference to a supply shock. Not only would a big stimulus package such as the one designed in 2008-09 at the time of the global financial crisis not address the specific problem that the economy is